Kuala lumpur: The Minister of Commerce confirmed that the MOU on critical minerals with the United States does not bind Thailand to choose sides. He revealed that China has already come to talks and expressed its willingness to cooperate with Thailand.

According to Thai News Agency, Ms. Suphajee Suthumpun, Minister of Commerce, gave an interview during the 47th ASEAN Summit in Kuala Lumpur, Malaysia, regarding Thailand’s signing of the Memorandum of Understanding (MOU) on cooperation on “critical minerals” between Thailand and the United States, or the MOU Rare Earth Minerals. She stated that this MOU is new for Thailand, having been added to the list. The Ministry of Foreign Affairs informed the United States that Thailand should sign the agreement together. The Ministry of Foreign Affairs has carefully reviewed the agreement and submitted it to the Cabinet and the Council of State for consideration. The Council of State has determined that it is not legally binding and cannot be revoked.

“This is a non binding agreement. It’s a collaborative knowledge transfer that will benefit us in our supply and demand chain. There are no investment commitments between the two parties, but we are open to joint study. No investment has been made. The Cabinet has reviewed this agreement through the Council of State. It is not legally binding and can be terminated by either party. Furthermore, there are no investment commitments and no impacts. Everything is clearly spelled out in the MOU,” Ms. Suphajee stated.

The Minister of Commerce stated that the implementation of this rare earth minerals must be in line with the Environmental Act and the Mining Act, with no special exceptions. He confirmed that it will be implemented in accordance with existing laws.

“If we get this, we might gain knowledge that we’re in the supply chain. We can sign with other countries. We’ve found that nine countries have already signed, and none of them have the same obligations. Thailand’s Ministry of Foreign Affairs has been very careful. There are no legal obligations. It’s a collaborative commitment that might help us in future trade negotiations,” said Ms. Suphajee.

Ms. Suphajee remains confident that the MOU will have no geopolitical implications, as it does not obligate Thailand to side with the United States, and China has also expressed its willingness to cooperate with Thailand.

“We don’t have rare earths, but China has 90% of the world’s rare earths. We don’t have a lot of them right now, but we might in the future. And some rare earths are possible. We can sign with China, but it’s not a trade agreement, like an FTA. Being a partner with this country doesn’t just benefit that country. We’ll take care of the other country as well.”

Ms. Suphajee emphasized that trade today must be open and free. Thailand is not a large country and relies on China and the United States. China is Thailand’s top trading partner for both imports and exports, while the United States is Thailand’s top exporter. Both markets are meaningful, enabling cooperation. However, there are no special arrangements. There is no such thing as a concern. Thailand should explain this to China if it comes to discussions.

“The Chinese ambassador met with me before I came here and told me not to worry, as he knew Thailand only uses semiconductors for commercial purposes. We are the end users, so there’s no need to worry about these measures impacting us. We’re negotiating this way, so there’s no need to worry. Please also note that this MOU has no legal implications. It’s a collaborative agreement, which could be beneficial for technology and could even help us get into the supply chain,” said Ms. Suphajee.

The Minister of Commerce reiterated that, in terms of geopolitics, Thailand is also in talks with China. Signing an MOU with the United States does not mean that it cannot be signed with China. The Chinese ambassador, who arrived with the United States before coming here, emphasized that there is no need to worry. Some rare earths can be used for military purposes, while others are being traded as usual.

Thailand has very few rare earth imports and exports, but this information should be passed on to the Ministry of Industry. There is absolutely no legal binding. As China is our number one trading partner, we must strike a balance, while also finding new markets within ourselves. Otherwise, if we rely on one, we will not be able to transform our trade.